Alert for Sponsors: What You Should Know About the Government's New Reimbursement Demands (2025)
3 min read
In the final weeks of December 2025, the immigration landscape changed drastically. The Department of Health and Human Services (HHS), under the direction of Deputy Secretary Jim O'Neill, began sending collection letters to citizens and permanent residents who sponsored immigrant family members.
The measure seeks to recover taxpayer funds used for public benefits such as Medicaid. If you signed an Affidavit of Support (Form I-864), this concerns you directly.
1. Why Is the Government Collecting Now?
It all comes down to the contract you signed: Form I-864. By signing it, you made two promises to the United States government:
- To keep the immigrant's income above 125% of the poverty level.
- To reimburse the government if the immigrant uses certain federal public benefits.
Although this law has existed since 1996, it was rarely enforced. However, following massive fraud scandals in Minnesota (the "Feeding Our Future" case), the current administration has decided to apply a "zero tolerance" policy to protect public funds.
2. Which Benefits Can Be Charged to Me? (And Which Cannot)
It is vital to distinguish between benefits that are safe and those that create debt.
Benefits that DO require reimbursement ("Means-Tested"):
According to federal guidelines, sponsors must reimburse income-based programs, such as:
- Medicaid (Regular medical services, not emergency care)].
- SNAP (Supplemental Nutrition Assistance Program / Food Stamps)].
- TANF (Temporary Assistance for Needy Families)].
- SSI (Supplemental Security Income)].
- SCHIP (Children's Health Insurance Program)].
⚠️ ATTENTION - IMPORTANT CHANGE 2025:
In July 2025, HHS updated its rules and now classifies programs such as Head Start (early childhood education) within the category of restricted federal public benefits. This means that use of these programs, which were previously considered safe, could now be subject to scrutiny.
Benefits That Generally Remain SAFE:
- Strict emergency medical care (Emergency Medicaid).
- Disaster relief assistance.
- Federal student loans.
3. When Does My Debt End?
Many sponsors believe their responsibility ends if they divorce or if the immigrant gets a job. This is false. A divorce does NOT cancel the I-864 contract.
Your financial obligation only ends if:
- The immigrant becomes a U.S. Citizen
- The immigrant works 40 quarters (10 years) paying into Social Security.
- The immigrant permanently leaves the U.S. and gives up their residency.
- The sponsor or the immigrant passes away.
4. What Should I Do If I Receive a Collection Letter?
The letters sent by Jim O'Neill warn that "all available means" will be used to collect.
- Do not ignore the letter: It is a step that may precede a civil lawsuit.
- Verify the amounts: Sometimes the government mistakenly charges for emergency services (which are not reimbursable) or for periods when the immigrant was already a citizen.
- Seek legal help: An attorney can review whether the debt is valid and help you negotiate or defend against it.
https://www.uscis.gov/sites/default/files/document/forms/i-864instr.pdf
https://www.nilc.org/resources/sponsored-immigrants-and-benefits/
Need legal advice?
Schedule your legal consultation and let us review your case.
Schedule Consultation